[video] Quick Take: Gold Jumps, Oil Fades Before Fed

NEW YORK (TheStreet) -- TheStreet's Joe Deaux spoke to Luke Rahbari and Mike McGlone about the FederalReserve's Federal Open Market Committee statement to be released around 2:00 p.m. EDT on Wednesday.

Gold was slightly higher by roughly $10 per ounce ahead of the announcement, while crude oil prices dropped following a 4.1 million barrel inventory increase, the sixth weekly increase in a row.

Rahbari, managing partner of Stutland Volatility Group, said he doesn't expect the Fed to change anything regarding its monetary policy from this meeting. However, it will be interesting to see if the Fed changes any of its inflation or labor targets that might affect when tapering would commence, he added.

He suggested the trickle-down effect from quantitative easing has yet to occur, and pointed out that 80% of stocks are owned by the top 12% of the wealthy while 60% are owned by the top 10%. Rahbari questioned how much longer QE could last like this.

McGlone, research director at ETF Securities U.S., said there's no way the Fed can taper in 2013 due to weaker-than-expected economic data and soft labor reports.

He suggested gold could go higher if the Fed holds back on tapering since it was one of the main catalysts that caused a sharp selloff earlier this year.

The Fed has said it wants to raise interest rates in 2015, but McGlone concluded by his own studies that 2017 is the more likely timeframe for an interest rate hike, barring a robust surge in the economy in the near future.